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Presented by Bob Wojciechowski, CFC, CC, ACB2-25-2013Your CONEXIS FSA

Sign Up and Save Money

Hello! My name is Bob Wojciechowski with CONEXIS, and I would like to welcome you to this recorded FSA enrollment presentation. Please note that this Power Point slide show is automated and will proceed without your intervention. However, you may stop the presentation at any time by pressing the Escape button on your keyboard.1The Benefits of an FSAFlexible spending accounts (FSAs) are part your benefits packageHealth FSADependent care FSAAllows you to use pre-tax dollars to pay for qualified expensesAdvantages Lowers your taxable income so you pay less in taxesPaying less in taxes means more money in your paycheckSave money on out-of-pocket expenses that youre already paying forHelps reduce the impact of rising health care costs and expensive child care services

In todays tough economy, every penny counts, right? If youre looking for ways to save money, heres some good news for you. Your benefits package includes flexible spending accounts. FSAs are funded by pre-tax dollars, and you can use your funds to pay for various eligible expenses throughout the plan year.

FSAs lower your taxable income. That means you keep more money in your paycheck because youre paying less in taxes. And when you use your FSA funds to pay for expenses that youre already paying for, you save money.

The amount you save depends on your tax bracket, and the average national tax bracket is 30 percent. So if you fall into this tax bracket, you save $30 in taxes for every $100 you put in your FSA. Just ask your tax advisor which tax bracket you are in.

IMPORTANT NOTE REGARDING STATE TAXES:*Pennsylvania does not exempt state withholding for dependent care benefits, and New Jersey does not exempt state withholding for employee salary reductions. Please review applicable state statutes or consult an accountant or payroll provider regarding state unemployment and workers compensation taxes.

2Health FSA

Lets further discuss a health FSA so you can find out how your bank account can benefit when you enroll in this plan.3Health FSA AdvantagesSet aside pre-tax dollars to pay for eligible health care expensesDeducted from paycheck in equal amounts throughout the plan year Your entire election amount is available on the first day of the plan yearFSA funds can be used for eligible expenses Expenses incurred by you, your spouse, and eligible dependentsCost-saving opportunityReduced taxesIncreased take-home payDollar-for-dollar value when using FSA funds to pay for eligible expenses

This is how a health FSA works. When you enroll, you set aside pre-tax dollars that you can use to pay for eligible health care expenses, like co-pays for doctor visits, qualified dental services, and prescription drugs. Eligible expenses can be those incurred by you, your spouse, and your eligible dependents.

The amount you contribute to your health FSA is deducted from your paycheck in equal amounts throughout the year; however, your entire contribution amount is available for you to use on the first day of your plan year, which begins on ______________________.

Enrolling in a health FSA lowers your taxes and increases your take-home pay. You get dollar-for-dollar value when you use your FSA funds to pay for your eligible expenses.

4Health FSA Savings Example

And look how the savings can really add up check out the extra money that Holly saved. Lets say your salary is $40,000 and youre in a 25 percent tax bracket. When you enroll in your health FSA, you decide to contribute $2,500 remember its deducted in equal amounts throughout the year. That puts your taxable income at $37,500 for the plan year. You pay $9,375 in taxes instead of $10,000.

Your after-tax income may seem less, but when youre no longer paying for medical expenses out of your pocket, look how much your take-home pay increases. You save $625! If you would like specific details, talk to your tax advisor to see you much youll save.

(Review the advantages)With a health FSA:You reduce your taxesYou increase the money in your paycheckYou get dollar-for-dollar value when using FSA funds to pay for eligible expensesYour entire election amount is available on the first day of the plan year

[For additional information if asked about itemization on a tax return]If youre thinking about itemizing health care expenses on your tax return, your expenses must equal at least 7.5 percent of your adjusted gross income. Most people dont incur medical expenses that are this high, and even when they do, they receive only the federal tax savings. By participating in a health FSA, your savings begin with the first dollar spent and you save on federal, state income, and Social Security taxes.

IMPORTANT NOTE REGARDING STATE TAXES: Pennsylvania does not exempt state withholding for dependent care benefits, and New Jersey does not exempt state withholding for employee salary reductions. Please review applicable state statutes or consult an accountant or payroll provider regarding state unemployment and workers compensation taxes.

5The Easiest Way to PayThe CONEXIS Elite Visa Benefit Card gives you instant access to your health FSA fundsEasy to use just swipe and go! But be sure to keep your receiptsInstant payment of your eligible expensesNo paying out-of-pocketReduces your paperworkNo need to submit a claim andwait for a reimbursement check

The CONEXIS Elite Benefit Card is issued by UMB Bank, n.a. pursuant to a license from Visa U.S.A. Inc.

Paying for health care expenses couldnt be any easier! Your FSA plan includes the CONEXIS Elite Visa Benefit Card that gives you instant access to your FSA funds and is the easiest and most secure way to pay for your eligible expenses.

With a CONEXIS Benefit Card, you can say goodbye to purchasing expenses out of your pocket and then waiting for a reimbursement check. All you have to do is simply purchase your eligible health care expenses at approved providers and merchants that accept Visa. Just swipe and go its that simple!

Common uses or the card include:Co-pays at doctor offices, co-insurance, and deductiblesQualified dental expenses, such as cleanings, X-rays, and fillingsQualified vision services, such as exams, eyeglasses, and contacts and cleaning suppliesPrescription drugs, diabetic supplies, and OTC health care items like thermometers, first aid kits, bandages, blood pressure monitors, etc.

[Extra information if asked]: If asked by the merchant to select debit or credit when using your card, you should select credit. Benefit card transactions are signature-based and processed in the same manner as a credit card transition. The card doesnt require or use a PIN number for authorization and theres no cash back option.

6Health FSA Expenses

There are literally hundreds of eligible health FSA expenses that can be paid for using your health FSA dollars.7Hundreds of Eligible ExpensesCo-pays, co-insurance, and deductiblesQualified dental expensesCleanings, X-rays, fillings, and bracesQualified vision expensesEye exams, LASIK, eyeglasses, and contacts and solutionsQualified professional servicesChiropractic services and acupuncturePrescription drugs, over-the-counter medicines*, and insulinMany over-the-counter health care-related itemsBandages, thermometers, blood pressure monitors, etc.

*Requires a prescription from a doctor to be an eligible expense; insulin is the only exception

Whats covered under a health FSA? Doctor office co-pays, your co-insurance, and deductiblesQualified dental expenses, like cleanings, X-rays, cavity fillings, root canals, braces, etc.Qualified vision expenses, such as eye exams, LASIK surgery, eyeglasses, contacts, and contact cleaning supplies Qualified professional services chiropractic and acupuncture servicesPrescription drugs, insulin, and diabetic suppliesOver-the-counter medicines if theyre prescribed by a doctorMany over-the-counter health care-related items and supplies, like Band-Aids, first aid kits, Ace bandages, pregnancy kits, blood pressure monitors, etc.

You visit the CONEXIS website to see a complete list of eligible expenses. Visit www.conexis.com/myfsa.

8Rules for Over-the-counter MedicinesHealth care reform changed reimbursement requirements Over-the-counter (OTC) medicines are eligible health FSA expenses only if prescribed by a doctor Electronic or written prescriptionPrescription issued by a doctor (or another individual who can legally issue a prescription) in the state where you purchase the OTC medicinesExamples:Allergy and sinus medicinesAspirin and pain relieversCough suppressants, cold and flu medicinesFirst aid creams, ointments, and spraysRules do not apply to OTC health care-related items and insulin

As previously mentioned, over-the-counter medicines require a prescription from a doctor to be an eligible health FSA expense. Health care reform legislation changed the IRS rules that govern FSAs, and now, you must obtain an electronic or written prescription from a doctor (or another individual who can legally issue a prescription like a physicians assistant) in the state where you purchase the OTC medicines.

This affects all OTC medicines, such as:Allergy medicines, sinus medicines and decongestants: Claritin, Sudafed, Benadryl, ZyrtecAntacids and acid relievers: Maalox, Tums, ZantacAspirin and pain relievers: Excedrin, Tylenol, Motrin, AdvilCough suppressants, cold and flu medicines: Nyquil, RobitussinFirst aid creams, ointments, and sprays: Neosporin, Bactine, Nicotine gum and patchesDiaper rash ointments: Balmex, Desitin

This is important! Please keep in mind that:Prescription drugs and insulin are not affected by this change. You can continue to follow your current process when purchasing these items and submitting your reimbursement requests.The rules for OTC items, such as bandages and first aid kits, have not changed. As noted in the previous slide, these items are still eligible for reimbursement through your health FSA. Be sure to review your current OTC expenses before your deciding on your election amount.

9Ineligible Health FSA ExpensesNo health FSA funds for cosmetic or general health itemsIneligible expenses:Cosmetic surgery and procedures (including teeth whitening)Personal use items (toothpaste, makeup, deodorant, etc.)Herbs, vitamins, and supplements used for general healthNon-prescribed OTC medicines (except insulin)Prescription drugs imported from another countryInsurance premiumsFamily or marriage counselingExpenses for services outside coverage periodExpenses reimbursed by another insurance provider or health planThis list is not inclusive; for more information visit www.conexis.com/myfsa

So whats not covered by a health FSA? This list shows many of the items and services that arent eligible expenses, which include products and services that are purchased for cosmetic, personal, or general health purposes. You cant use your health FSA funds to pay the items listed on the slide.

[Review list.]

This list doesnt show all of the ineligible items, so its a good idea to visit the CONEXIS website if youre wondering about a particular expense. You can find additional details about eligible and ineligible expenses at www.conexis.com/myfsa.

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Dont miss out on this savings opportunity! Its probably the easiest money youll ever save. 11Sign Up and Save MoneyThink about how much you will spend on health care and dependent care expenses in the upcoming plan yearReview a list of eligible expenses and informative FAQs on the CONEXIS websiteFigure out how much to put in your FSAUse the online calculators on the CONEXIS websiteSign up during your employers open enrollmentWhen the plan year begins, your FSA contributions will be deducted in equal amounts throughout the plan yearTotal health FSA election amount is available the first day of the plan yearDependent care FSA funds accumulate throughout the year

During the open enrollment period, think about how much you want to put into your account. You can visit the CONEXIS website to review eligible expenses, and then estimate how much you plan to spend on health care and/or dependent care expenses next year.

Enrolling in an FSA is done during your employers open enrollment period. Just follow the enrollment steps provided by your employer.

[Explain the enrollment process if you have the details.]

And when the plan year begins in ___________, youll begin contributing funds throughout the plan year. Remember, your total health FSA election amount is available on the first day of the plan year, but your dependent care FSA funds will accumulate as theyre deducted throughout the year.

12Helpful Online ResourcesOnline tools and informative resources Savings calculatorsSavings examplesList of hundreds of eligible expenses Participation guidelines and FAQsVisit www.conexis.com/myfsa

As I mentioned in the previous slide, youll find a wide variety of online resources on the CONEXIS website. Check out our savings calculators and let us do the math for you as you decide how much to put into your FSA.

Everyone benefits by having an FSA! Find out how others are saving money be reviewing the savings examples on the CONEXIS website.

As you begin to estimate your expenses, check out the list of eligible expenses so you can see the hundreds of services and health care items that can be paid for with FSA funds.

And if you have an FSA question, its more than likely answered in our helpful FAQs.

Simply visit www.conexis.com/myfsa.

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Thanks for taking time today to learn the ins and outs an FSA.

[If applicable, allow time for participants to ask questions.]

You can get more information about a flexible spending account by visiting www.conexis.com/myfsa.

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